Full House Resorts Inc . (NASDAQ:FLL) President and CEO Daniel R. Lee recently engaged in significant stock transactions, according to the latest SEC filings. On multiple dates in early October, Lee sold a total of 25,273 shares of the company's common stock, resulting in proceeds exceeding $125,000.
The sales were conducted at weighted average prices ranging from $4.9587 to $5.0028 per share. Specifically, on October 4, Lee sold 13,351 shares at an average price of $4.9587, on October 7, another 8,382 shares were sold at an average of $5.0028, and on October 8, the CEO sold 3,540 shares at an average price of $4.9965. These transactions were part of a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading.
In addition to the sales, Lee also exercised options to acquire shares of Full House Resorts on the same dates. On October 4, he acquired 13,351 shares, followed by 8,382 shares on October 7, and 3,540 shares on October 8, all at a set price of $1.25 per share. The total amount paid for these option exercises was $31,591.
Following these transactions, the CEO's direct holdings in Full House Resorts common stock remained substantial, with 1,588,880 shares still owned. The filings also revealed indirect holdings through trusts and custodial accounts for family members, including 145,735 shares owned by a trust, 132,945 shares by a subtrust, and 15,926 shares held as a custodian for his daughter.
Investors often monitor insider buying and selling as it can provide insights into management's perspective on the company's current valuation and future prospects. The transactions of Full House Resorts' CEO are particularly noteworthy given his role as a top executive within the company.
In other recent news, Full House Resorts, Inc. has agreed to sell Stockman's Casino in Fallon, Nevada to Clarity Game LLC for approximately $9.2 million. The transaction, expected to conclude by late September 2024, will see the company continue to operate the casino until the finalization of the sale. This development follows significant growth at Full House Resorts' Chamonix property and a positive EBITDA reported for Q2 2024.
The company has also announced plans for the American Place project, with construction expected to begin in August 2025. To finance this $325 million project, the company is contemplating issuing new bonds. Full House Resorts is focusing on attracting group and convention business, aiming to boost midweek room occupancy and has plans to hire more sales personnel.
Despite a lawsuit from the Potawatomi tribe, which could potentially affect the timeline of the American Place project, Full House Resorts remains optimistic about the long-term success of its Chamonix casino. Gaming revenues at Chamonix have more than doubled compared to a year ago. These recent developments highlight Full House Resorts' strategic financial planning and commitment to growth.
InvestingPro Insights
To provide additional context to CEO Daniel R. Lee's recent stock transactions, let's examine some key financial metrics and insights from InvestingPro for Full House Resorts Inc. (NASDAQ:FLL).
According to InvestingPro data, Full House Resorts has a market capitalization of $173.65 million, with its stock price closing at $5 in the most recent session. The company has shown impressive revenue growth, with a 47.08% increase over the last twelve months as of Q2 2024, reaching $274.99 million. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
Despite the revenue growth, Full House Resorts faces some financial challenges. An InvestingPro Tip highlights that the company operates with a significant debt burden, which could explain why the CEO might be selling shares to diversify his personal portfolio. Additionally, the company is not profitable over the last twelve months, with a negative P/E ratio of -6.26, suggesting ongoing profitability concerns.
The stock's performance has been mixed, with a strong 21.07% return over the past year, but a slight decline of -6.89% year-to-date. This volatility is reflected in another InvestingPro Tip, which notes that FLL's stock price movements are quite volatile.
For investors considering Full House Resorts, it's worth noting that InvestingPro offers 12 additional tips that provide a more comprehensive analysis of the company's financial health and market position. These insights can be valuable for understanding the broader context of insider transactions like those of CEO Lee.
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